Inside Facebook's Next Billion Dollar Business

fudymaFacebook's road to becoming a $100 billion company is to infect every sector of the internet with its social graph, letting other companies build and expand their business on top of it and taking a toll in exchange for that.

Here's how it will look, according to Giga Om: your Facebook homepage will include a Music tab leading to a Music Dashboard where you will be able to listen to music and see what music your friends are listening to.

The goal is to do for music what it did for games: use its social graph to help Facebook users discover music and help music startups get users.

At eG8 Forum, Mark Zuckerberg said he thought the next industry to get disrupted by social, after games, would be music, and then movies.

It's not clear if and how Facebook can make money directly from music. Facebook can take a 30% cut off social games because virtual goods have zero marginal costs. By contrast songs streamed over the internet (at least legally) have high licensing costs; indeed, most internet streaming businesses have unprofitable unit economics. It doesn't seem likely that internet music startups can afford to pay yet another tollmaster.

However, a music dashboard would get Facebook users to stay on Facebook.com all through the day if that's where they stream music from, and so they would see a lot more ads.